dealership on ch 4

TradePro

gardner1 wrote: »

sorry....total cost inc interest

gardner1 wrote: »

its a bit different with a house

I agree that there are idiots out there getting themselves into difficulties, but the fact is that most of us have to borrow, thus pay interest, to get through life.

1jim

I can kind of see this both ways

I would value the house (or car) at its market value regardless of finance costs

But I would take into account the overall cost when looking at making a decision on deals. The programme last night, it seemd obvious to me that the couple/woman was a bit bamboozled by the figures. She nailed it when she said the comment of how the term had been extended but didn't realise this increased her overall cost.

So for me, the item is worth what the market is willing to pay for it
The value is it the overall cost worth it to me/am I happy to pay the overall cost to own/rent/lease the item....quickly followed by can I get that cost down a bit ;-)

gardner1

TradePro wrote: »

I agree that there are idiots out there getting themselves into difficulties, but the fact is that most of us have to borrow, thus pay interest, to get through life.

yes but at least try and get a good deal for yourself and if credit rating isn't good don't bother or try and improve it

1jim

Should just add, I was in the fortunate position when buying the picanto of deciding to pay cash or get on a pcp deal. Now the probably sensible choice was to pay outright in cash as its earning little in interest but the monthly payments are so small to be insignificant and because of that we are likly to just continue thinking of it as a monthly bill and trade in every 3 years so the wife has a newish relatively worry free reliable car. So for us the low APR although adding interest onto the deal was worth it